Am I being too optimistic?

Minky_2

I've got a lifetime tracker mortgage with HSBC since 2007 - rate around .5% above base rate. I married last year and now we want to get out of the one bed flat and get a house.

My credit history isn't bad apart from one incident of helping my mum out (grrrrrrr!) who missed payments in Oct & Nov 2006, July 2007 and then she settled the account in August 2007. Other than that I’m completely clean and have been in continuous employment for 23 years.

Hubby on the other hand, not so much. He's currently paying a bailiff for unpaid council tax. He says there is no other debt outstanding. (I’lll be signing him up to Equifax and Experian to check that but I believe it to be true). Assuming that that's OK, he's also only been in full time employment for about 2 years.

I’ve got around £50k equity in my flat and I’m hoping to port the existing rate I have to a new property and then get another tracker mortgage to make up the difference on a new home.

Firstly, am I in cuckoo land that HSBC will port my great rate to a new property? Are they likely to reject an application to effectively reject the port? Our salaries aren’t high so it would make huge difference on what property we could afford if we ‘can’t’ port.

I'm 38 and hubby is 48. Am I right in assuming that we will only get an additional loan for a max of 17 years to take him to 65 or would they take my age into account? I'm also the one with the higher salary.

And is the credit history going to hurt? Obviously the bailiff won't show on a credit report but they will see a cheque for the same amount coming out of hubby's bank account each month and will want to know what that is.

My credit issue is obviously due to be removed from my history in August this year. I’m assuming it would be best to wait until this has gone or will it not make that much difference due to its age?

Is there any more we can do to help ourselves?

Thanks in advance for any advice.

Thrugelmir

Minky wrote: »

Obviously the bailiff won't show on a credit report

The court register will be checked.

http://www.trustonline.org.uk/

If you can afford to move house. Then its in your interests to clear this debt.

Minky_2

OK thanks. I'll have a look at trying to do that but it may take a while as he buried his head for a few years.

Can anyone help with any of the other points at all?

Thrugelmir

Resolving your credit issues must be the priority. HSBC won't offer you anything with this on the record.

What does your mortgage offer say in respect of porting?

Minky_2

I haven't got access to my mortgage documents at the moment only that when I called HSBC they said that all their mortgages are portable. I didn't enquire any further at that stage as I had a lot of other questions I wasnted to find answers too first before speaking too much to them, hence why I thought I'd try here first

kingstreet

Porting the rate is dependent on the lender accepting a new mortgage application from you. Being told their mortgages are portable is no real use to you as an individual.

The likelihood of this happening can only be confirmed by the lender in question.

What about an agreement in principle?

Minky_2

That I understand, which is why I was trying to find some answers to questions I had.
We haven't done anything yet; not found a property or put ours up for sale. I just want to give us the best chance ofgetting accepted and just had some questions before we started looking into it in more depth.